On account of the OPEC+ agreement to cut output by 100,000 barrels per day in October, Oil prices have seen a slight decline in oil prices on Tuesday. This action by OPEC+ is being considered mostly a symbolic attempt to support prices after the market’s recent downtick.
OPEC+ agreed on Monday for a cut in crude supply in a proposition to sustain oil prices. Official Sources have revealed that Brent crude futures had fallen 81 cents, or 0.9%, to $94.93 a barrel by 0354 GMT. U.S. West Texas Intermediate (WTI) crude futures have seen an upward trend from Monday to $88.57 a barrel and were $1.70 higher, or 2.0%, than Friday’s close.
After top producer, Saudi Arabia, and other members expressed worry about the decline in prices since June despite tight supply, the Organization of Petroleum Exporting Countries and allies led by Russia, collectively known as OPEC+, opted to reverse a 100,000 BPD increase for September.
In response to the reservations of top oil producer Saudi Arabia and other members following the decline in prices since June despite tight supply, The Organization of Petroleum Exporting Countries and Allies led by Russia called OPEC+ and opted to reverse the 100,000 BPD increase for September.
Analysts have stated that this move by OPEC+ was crucial for the stability of the oil market. Noah Barret, research analyst for energy and utilities at Janus Henderson Investors stated that “ This move by OPEC+ signal towards the fact that they are watching demand very closely and are trying to manage supply to keep a floor on oil prices”.
